Dublin
07 June 2017
Reporter: Mark Dugdale

Insurers and reinsurers struggle with SFCR in Ireland


The first round of solvency and financial condition reports filed in Ireland under Solvency II show that Irish insurers and reinsurers struggled with the system of governance disclosure requirement, according to Deloitte.

Deloitte Ireland examined the solvency and financial condition reports—which must be made publically every year under Pillar III of Solvency II—of Irish life, non-life, health and composite companies and, within this, direct writers, reinsurers and captives of all sizes.

The Central Bank of Ireland “sent a clear message” to Irish insurers and reinsurers that the system of governance was a key disclosure requirement, but, in Deloitte’s opinion, “companies struggled to present useful information in an accessible way”.

“In many cases, this section was a compilation of information already included in other documents without much attention to the overall coherence and consistency of the information presented,” Deloitte said.

“Generally, the information presented was at the minimum factual level with no real insight into the company-specific system of governance. Some companies did include diagrams to provide clarity around the company and its governance structure but this approach was not universal. The overall feel of this section was that it was very ‘boilerplate’.”

A number of specific requirements to be included within the system of governance section of the solvency and financial condition report were not always met, according to Deloitte.

“For example, a number of companies did not include the location of outsourced providers within their report and only a small minority of companies gave more information on their remuneration policy than just the general principles.”

Deloitte anticipates the system of governance to be an area where companies will need to enhance as market practice emerges.

More regulation news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
UK’s ILS legislation to be in place for January renewals
17 October 2017 | London | Reporter: Jenna Lomax
Malcolm Newman, CEO of Scor’s London hub and sponsor of the London Market Group’s (LMG) ILS Taskforce is “cognisant of the time pressures if ILS applications are to be made in time for 1 January renewals”
Tennessee updates captive legislation
03 October 2017 | Nashville | Reporter: Becky Butcher
New captive legislation is to set Tennessee apart from other US captive insurance domiciles, according to the state’s Department of Commerce and Insurance (TDCI).
US and EU sign covered agreement
22 September 2017 | Brussels | Reporter: Becky Butcher
The US and EU have signed the bilateral covered agreement on insurance and reinsurance
GFSC addresses Solvency II and IAIS capital standards project
20 September 2017 | St Peter Port | Reporter: Becky Butcher
The Guernsey Financial Services Commission (GFSC) has launched a discussion paper seeking the industry’s feedback on the evolution of the island’s global and European insurance capital standards
DARAG completes Ikano captive transaction
08 September 2017 | Jerusalem | Reporter: Katherine Brown
DARAG has completed an Israeli reinsurance transaction and received regulatory approval for the acquisition of Ikano Försäkring, the Stockholm-based Swedish captive owned by Ikano Group
Avrahami might not have all the answers, says Feldman
29 August 2017 | Houston | Reporter: Becky Butcher
The US Tax Court’s ruling in Avrahami might not be the victory for the IRS that everyone thinks it is, according to Stewart Feldman, CEO and general counsel of Capstone Associated Services
Avrahami provides clarity for 831(b)s
25 August 2017 | Burlington | Reporter: Becky Butcher
The ruling of the Avrahami vs Commissioner of Internal Revenue court case finally provides additional clarity for captives organised under Section 831(b), according to Anne Marie Towle of JLT